Huasheng International Holding Limited (1323) AI Stock Analysis

• Market Cap: HK$90.68M
• Dividend Yield: N/A
• Average Volume (3M): 218.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -28.42%
• EPS Growth: -47.07%
• Country: HK
• Employees: 173
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Household & Personal Products
• EPS (TTM): -0.06
• Shares Outstanding: 755,654,700
• 10 Day Avg. Volume: 550,020
• 30 Day Avg. Volume: 218,626
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 1.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.13 ▲(4.17% Upside)

The overall stock score is primarily impacted by poor financial performance and weak technical indicators. The company's declining revenue and profitability, coupled with negative market sentiment, contribute to a low score. Valuation concerns, including a negative P/E ratio and lack of dividend yield, further weigh down the score.

Positive Factors

Cash Flow Generation

The company's ability to generate positive free cash flow despite losses indicates strong cash management, providing a buffer for operations and potential investments.

Supply Chain Network

An extensive supply chain network enhances operational efficiency and market reach, supporting stable revenue flows and competitive positioning.

Debt Management

Improved debt-to-equity ratio indicates manageable leverage, enhancing financial stability and reducing risk of financial distress.

Negative Factors

Declining Revenue

Significant revenue decline suggests challenges in market demand or competitive pressures, impacting long-term growth potential.

Negative Profitability

Negative profitability reflects operational inefficiencies and cost management issues, threatening sustainable business operations.

Operational Inefficiencies

Negative EBIT and EBITDA margins highlight operational inefficiencies, requiring strategic improvements to enhance profitability.

Huasheng International Holding Limited Business Overview & Revenue Model

Company Description

Huasheng International Holding Limited, an investment holding company, engages in the concrete, money lending, and household consumables businesses in Hong Kong, the United Kingdom, and the People's Republic of China. The company is involved in the wholesale and retail of household consumables; and money lending activities. It also produces and sells ready-mixed commercial concrete; and cement and construction materials, as well as provides management services. The company was formerly known as Newtree Group Holdings Limited and changed its name to Huasheng International Holding Limited in March 2020. Huasheng International Holding Limited was incorporated in 2010 and is based in Central, Hong Kong.

How the Company Makes Money

Huasheng International generates revenue through multiple streams, primarily from the sale of its manufactured products, which include electronic components and consumer goods. The company also engages in trading activities, importing and exporting goods which contribute significantly to its revenue. Additionally, Huasheng may derive income from strategic partnerships and collaborations with other firms, enhancing its market reach and distribution capabilities. The company's investment activities in various sectors also provide a supplementary revenue source, allowing it to capitalize on growth opportunities in diverse markets.

Huasheng International Holding Limited Financial Statement Overview

Summary

The company faces significant challenges with declining revenue and profitability, as well as operational inefficiencies. The balance sheet shows moderate leverage, but the negative return on equity is a concern. Cash flow generation is a positive aspect, but the company needs to improve its operational performance to achieve sustainable growth.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. Revenue has decreased significantly over the years, with a notable drop of 18.77% in the latest year. Gross profit margin has also declined, indicating pressure on cost management. The company has been unable to maintain positive net income, with a net profit margin of -24.80% in the latest year, reflecting ongoing losses. EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved slightly over the years, currently at 0.26, indicating manageable leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, showing a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis reveals mixed results. While the company has achieved positive free cash flow growth of 11.67% recently, the operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is relatively high, suggesting that despite losses, the company is generating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	372.57M	372.57M	565.91M	660.37M	803.91M	919.33M
Gross Profit	65.20M	65.20M	154.46M	190.35M	181.54M	198.01M
EBITDA	-39.38M	-39.08M	19.68M	-1.60M	82.69M	81.44M
Net Income	-124.88M	-92.38M	-31.44M	-54.77M	31.29M	-1.63M
Balance Sheet
Total Assets	1.47B	1.47B	1.64B	1.80B	2.03B	1.73B
Cash, Cash Equivalents and Short-Term Investments	76.56M	76.56M	163.36M	69.49M	167.83M	121.53M
Total Debt	229.21M	229.21M	338.40M	376.30M	341.71M	357.32M
Total Liabilities	567.56M	567.56M	675.58M	834.50M	1.07B	815.30M
Stockholders Equity	897.85M	897.85M	960.40M	964.30M	955.48M	919.17M
Cash Flow
Free Cash Flow	5.23M	116.88M	90.70M	-70.97M	70.98M	-29.86M
Operating Cash Flow	5.23M	128.70M	96.75M	-66.22M	77.98M	-22.28M
Investing Cash Flow	-7.83M	-89.57M	9.90M	-79.98M	-105.20M	-12.03M
Financing Cash Flow	-18.82M	-129.30M	-11.62M	117.50M	-51.15M	127.67M

Huasheng International Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1323, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 22.90 is Positive, neither overbought nor oversold. The STOCH value of 35.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1323.

Huasheng International Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1338	56 Neutral	HK$123.34M	43.33	1.83%	―	5.99%	-74.29%
8436	55 Neutral	HK$82.00M	17.83	1.89%	―	-20.10%	-74.16%
8281	50 Neutral	HK$99.00M	15.00	2.37%	―	-1.65%	230.00%
6893	49 Neutral	HK$262.03M	-6.54	-23.55%	―	10.42%	11.14%
1667	48 Neutral	HK$350.40M	-6.22	-346.03%	―	-24.25%	49.22%
1323	45 Neutral	HK$90.68M	-0.96	-10.55%	―	-28.42%	-47.07%

Huasheng International Holding Limited Corporate Events

Huasheng International Reports Increased Loss Amidst Declining Concrete Demand

Huasheng International Holding Limited reported a net loss of approximately HK$41.8 million for the six months ending September 2025, a significant increase from the previous year’s loss. The company’s revenue decreased by 19.3% due to low demand for concrete in China, influenced by a struggling real estate market, slower infrastructure investments, and policies reducing excess capacity in the cement industry. The gross profit margin also fell sharply due to decreased sales volume, lower selling prices, and rising raw material costs, impacting the company’s financial performance and market positioning.

Huasheng International Issues Profit Warning Amid Market Challenges

Huasheng International Holding Limited has issued a profit warning, anticipating a significant increase in net loss for the six months ending September 2025, compared to the same period in 2024. The increased loss is attributed to a decline in demand for concrete products due to a sluggish real estate market in China, increased raw material costs, and intensified price competition. Additionally, the company experienced an increased share of loss from associates, although it benefited from reduced finance costs due to decreased borrowing.

Huasheng International to Announce Interim Results and Dividend Consideration

Huasheng International Holding Limited has announced that its board of directors will meet on November 28, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting stakeholders’ expectations and the company’s market positioning.